With our engagement in rural development, we have had experience in forming common interest groups and supporting livelihoods. We observed the strong need and lack of financial products & services in lives of the farmers we worked with. Hence in 2009, we started the microfinance activities with our own seed fund and observed >97% repayment with a positive impact on lives of the client. We are currently in the processing of scaling up this activity with financial support from Rabo Bank and institutional support from BASIX.
|Financing||Active JLGs ‘Dec 12||Disbursement||Outstanding credit||Recovery rate||Partnerships|
|Self, Upcoming from Rabo Bank||50||26 Lakhs||~14 Lakhs||>97%||BASIX & Rabo Bank|
We have worked extensively with BASIX to ensure an efficient and client facing microfinance organizational capability. We have worked across parameters of organization design & structure, service operations, standard operating procedures, and product and services design aligned with our vision and mission. With the new energy and capability, we will be offering new products and services in SHG, JLG and individual formats. The offerings are given below:
|Size||Int. Rate||LPF||Cash Security||Moratoria period||Ins. Max& Min.||Mode||Insurance||Pre Closure Penalty|
|Trade/Services/ NFS||5000 – 15,000||24% Reducing||6%||10% of loan amt||60 Days||10-24 months||JLG SHG||As per Insurance Company||2% of o/s balance|
|24%||6%||10% of loan amt||60 Days||12-30 months||JLG||As per Insurance Company||2% of o/s balance|
|General Purpose Loan||3000 – 6000||24%||Min. (200/6%)||10% of loan amt||45 Days||6-12 months||JLG SHG security||As per Insurance Company||2% of o/s balance|
|Agriculture Ravi/Kharif||5000 –
|21%||6%||10% of loan amt||180 Days||1st inst. - Dec.
2nd inst. - Last of May
|JLG||As per Insurance Company||2% of o/s balance|
|Vegetable production||5000 – 10,000||24% Reducing||6%||10% of loan amt||60 Days||4 Equal inst. upto May.||JLG SHG||As per Insurance Company||2% of o/s balance|
|Loan to SHG||20,000 –
|5% of loan amt||60 Days||12 - 36 months||Only SHG.||As per Insurance Company||2% of o/s balance|
The operations are now completely computerized with the DELPHIX system now being implemented. Standard questioners are being deployed for SHG/JLG ratings, portfolio assessment, service delivery standardization and client feedback. We are determined to achieve excellence at every level.
ASORD sees microfinance as a strategic and client necessity and also an avenue to leverage the already established connection with our operational areas for purposes of development and empowerment. And by employing the best practices and methodologies with support from BASIX, we are well geared to make deeper inroads along this path.
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